Ticker: $I
Company: Intelsat
I mean, this shit doesn't belong in this price range AT ALL. Anybody permabullish on this stock is either delusional, or simply dense. Without disclosing any concrete financial agreement terms, the partnership news with Vodacom Business Nigeria is pretty much worthless. A 14 billion dollar anvil tied with dental floss hangs over the head of this stock price, and wall street is about to cut it.
For the past few trading days, this stock has washed out at the bell and rallied back to run intraday, but I think it has finally reached a point of over exhaustion and it is due for a severe correction. I feel it is extremely overcrowded both on the retail and institutional side, and once momentum starts shifting, we are going to see a massive dump happen. A 100 k block of shares was dumped at the close on Friday, and I highly doubt the bleeding is going to stop anytime soon. Close to a 100% jump in about a week or so is not a sustainable move. Especially considering the massive amount of debt, and the meaningless agreement with a Nigerian company in a country in political and religious turmoil.
*Source: Will Healy, https://investorplace.com/2018/04/deal-unlikely-fix-balance-sheet-intelsat-stock/ Follow them on Twitter: @Investorplace
On the technical side of things, $7.50ish is long-term resistance and it is my opinion, that Monday morning we are going to see a push to 8 and a massive wash out. I could be wrong, and momentum chasers or a chatroom can come in and fuck the chart up, but most likely gravity will take over. What a beautiful chart!
I will personally sit on my hands until I get a clear picture Monday morning, because last week this stock has punched me in the stomach, called me a little bitch, stole my lunch money and it's taking my girl to prom (You get the picture). So if you are going to attempt to trade this on the long or short side, be mindful of the risks involved guys.
Trade safe, and I'll see you guys out there.
Have a good weekend, and feel free to reach out on Twitter: @mickdostie
-Mick
Congratulations on your success so far. I just want to help by reminding you of an important part.
@TypodTouch I appreciate your input, but I did say it might continue to go on air and I will wait for weakness. My premise was that the financial part of this company is doodoo, this is clearly up on air and is about to reach previous 52 week resistance, therefore could crash and burn. I only wrote this piece after due dilligence and research and wanted to help other traders track a stock that COULD be on the way down soon
@TypodTouch Making a watchlist is all about tracking stocks, researching and forming a thesis. I have no position in this whatsoever right now, so I'm not trying to rationalize a position, this is only my analysis of a steaming pile of shit company so in debt, that in their own 20-F they state: "require us to dedicate a substantial portion of available cash flow to pay principal and interest on our outstanding debt, which will reduce the funds available for working capital, capital expenditures,
@TypodTouch acquisitions and other general corporate purposes." I smell a financing coming, and Tim does research gainers and does his DD and forms a thesis, but will only enter when the setup is there. When he says stop justifying why a stock should crash with a reason, I'm guessing he implies you have a position and try to convince yourself to stay with it. In this case, I'm justifying why it SHOULD be on your watchlist. But thanks again for your input, I will keep it in mind
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